Join Australia's most dynamic and respected property investment community

Break costs deductible?

Discussion in 'Accounting & Tax' started by JohnPropChat, 15th Sep, 2015.

  1. JohnPropChat

    JohnPropChat Well-Known Member

    Joined:
    10th Sep, 2015
    Posts:
    620
    Location:
    Perth
    If a fixed interest loan has been terminated (either for sale or some other reason) then are the break costs deductible? I think they'll be capital in nature, if so can it be spread over 5 years like LMI?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    10,374
    Location:
    Sydney
    JohnPropChat likes this.
  3. JohnPropChat

    JohnPropChat Well-Known Member

    Joined:
    10th Sep, 2015
    Posts:
    620
    Location:
    Perth
    What is a good "well before"? The day that someone puts in an offer and I know that I'll sign it :) ?
     
  4. ? . The problem ones are when the owner doesn't break the fixed rate and the bank does it for them at settlement. That's fatal. Instead I would think if it was broken well before putting property on market that a reasonably arguable position can establish the break to variable rate was made based on a perception based on rates themselves. The longer the time the better. The week before = Fail. Several month far better.
     
    JohnPropChat likes this.